1.
Journalize the transactions for the month of July.
1.
Explanation of Solution
Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
- Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
Journalize the transactions for the month of July:
Date | Account title and explanation | Post Ref. | Amount | ||
Debit | Credit | ||||
20-- | |||||
July | 1 | Cash | 111 | $25,000.00 | |
Person AV's Capital | 311 | $25,000.00 | |||
1 | Spa Supplies | 115 | $490.00 | ||
Accounts Payable - Company GSS | 211/✓ | $490.00 | |||
1 | Purchases | 511 | $5,300.00 | ||
Freight In | 515 | $145.00 | |||
Accounts Payable - Company SG | 211/✓ | $5,445.00 | |||
1 | Purchases | 511 | $3,692.00 | ||
Freight In | 515 | $104.00 | |||
Accounts Payable – Company LP | 211/✓ | $3,796.00 | |||
2 | Purchases | 511 | $2,623.00 | ||
Freight In | 515 | $98.00 | |||
Accounts Payable - Company SM | 211/✓ | $2,721.00 | |||
2 | Accounts receivable - Company LOL | 113/✓ | $351.00 | ||
Merchandise Sales | 412 | $325.00 | |||
Sales Tax Payable | 215 | $26.00 | |||
3 | Spa Equipment | 128 | $8,235.00 | ||
Accounts Payable -Incorporation SE | 211/✓ | $6,235.00 | |||
Cash | 111 | $2,000.00 | |||
3 | Rent Expense | 612 | $1,650.00 | ||
Cash | 111 | $1,650.00 | |||
4 | Accounts Receivable- Company C | 113/✓ | $520.02 | ||
Merchandise Sales | 412 | $481.50 | |||
Sales Tax Payable | 215 | $38.52 | |||
5 | Accounts Payable - Company GSS | 211/✓ | $492.00 | ||
Cash | 111 | $492.00 | |||
5 | Accounts Payable - Company OS | 211/✓ | $120.00 | ||
Cash | 111 | $120.00 | |||
5 | Miscellaneous Expense | 630 | $98.00 | ||
Cash | 111 | $98.00 | |||
5 | Accounts Payable - Incorporation A | 211/✓ | $397.00 | ||
Cash | 111 | $397.00 | |||
5 | Wages Payable | 212 | $369.50 | ||
Wages Expense | 611 | $1,476.00 | |||
Cash | 111 | $1,845.50 | |||
5 | Office Equipment | 124 | $420.00 | ||
Accounts Payable - Company SE | 211/✓ | $420.00 | |||
5 | Promotion Expense | 630 | $186.00 | ||
Accounts Payable - Company OS | 211/✓ | $186.00 | |||
5 | Office Supplies | 114 | $118.00 | ||
Accounts Payable -Company OS | 211/✓ | $118.00 | |||
5 | Purchases | 511 | $1,253.00 | ||
Freight In | 515 | $56.00 | |||
Accounts Payable - Company G | 211/✓ | $1,309.00 | |||
5 | Accounts receivable - Company PS | 113/✓ | $1,961.23 | ||
Merchandise Sales | 412 | $1,815.95 | |||
Sales Tax Payable | 215 | $145.28 | |||
7 | Cash | 111 | $4,881.60 | ||
Merchandise Sales | 412 | $1,410.00 | |||
Income from Services | 411 | $3,110.00 | |||
Sales Tax Payable | 215 | $361.60 | |||
7 | Cash | 111 | $150.00 | ||
Accounts Receivable - Company JA | 113/✓ | $150.00 | |||
10 | Accounts Receivable - Company HC | 113/✓ | $367.47 | ||
Merchandise Sales | 412 | $340.25 | |||
Sales Tax Payable | 215 | $27.22 | |||
10 | Accounts Receivable - Company MS | 113/✓ | $222.48 | ||
Merchandise Sales | 412 | $206.00 | |||
Sales Tax Payable | 215 | $16.48 | |||
12 | Wages Expense | 611 | $1,845.50 | ||
Cash | 111 | $1,845.50 | |||
12 | Accounts Receivable - Company AFS | 113/✓ | $521.59 | ||
Merchandise Sales | 412 | $482.95 | |||
Sales Tax Payable | 215 | $38.64 | |||
14 | Cash | 111 | $200.00 | ||
Accounts Receivable - Company JM | 113/✓ | $200.00 | |||
14 | Cash | 111 | $4,158.00 | ||
Merchandise Sales | 412 | $1,220.00 | |||
Income from Services | 411 | $2,630.00 | |||
Sales Tax Payable | 215 | $308.00 | |||
18 | Accounts Payable - Company SE | 211/✓ | $1,150.00 | ||
Cash | 111 | $1,150.00 | |||
19 | Wages Expense | 611 | $1,840.50 | ||
Cash | 111 | $1,840.50 | |||
21 | Cash | 111 | $180.00 | ||
Accounts Receivable - Company TL | 113/✓ | $180.00 | |||
21 | Cash | 111 | $5,248.80 | ||
Merchandise Sales | 412 | $1,940.00 | |||
Income from Services | 411 | $2,920.00 | |||
Sales Tax Payable | 215 | $388.80 | |||
25 | Spa Equipment | 128 | $173.00 | ||
Cash | 111 | $173.00 | |||
26 | Wages Expense | 611 | $1,842.00 | ||
Cash | 111 | $1,842.00 | |||
28 | Laundry Expense | 615 | $84.00 | ||
Cash | 111 | $84.00 | |||
28 | Cash | 111 | $109.00 | ||
Accounts Receivable - Company JW | 113/✓ | $109.00 | |||
31 | Cash | 111 | $6,471.36 | ||
Merchandise Sales | 412 | $1,930.00 | |||
Income from Services | 411 | $4,062.00 | |||
Sales Tax Payable | 215 | $479.36 | |||
31 | Person AV's Drawing | 312 | $2,500.00 | ||
Cash | 111 | $2,500.00 | |||
31 | Utilities Expense | 617 | $225.00 | ||
Cash | 111 | $225.00 | |||
31 | Utilities Expense | 617 | $248.00 | ||
Cash | 111 | $248.00 | |||
31 | Spa Equipment | 128 | $1,800.00 | ||
Person AV's Capital | 311 | $1,800.00 |
Table (1)
2.
2.
Explanation of Solution
Post the entries to the accounts receivable, accounts payable and general ledger:
General Ledger:
Sales journal | |||||||
Date | Invoice No. | Customer's name | Post Ref. | Accounts Receivable debit ($) | Sales tax payable credit ($) | Merchandise sales credit ($) | |
20-- | |||||||
July | 2 | 14 | Company LOL | 351.00 | 26.00 | 325.00 | |
4 | 15 | Company C | 520.02 | 38.52 | 481.50 | ||
5 | 16 | Company PS | 1,961.23 | 145.28 | 1,815.95 | ||
10 | 17 | Company HC | 367.47 | 27.22 | 340.25 | ||
10 | 18 | Company MS | 222.48 | 16.48 | 206.00 | ||
12 | 19 | Company AFS | 521.59 | 38.64 | 482.95 | ||
31 | Totals | 3,943.79 | 292.14 | 3,651.65 | |||
(113) | (215) | (412) |
Table (2)
Table (3)
Account: Cash | Account No. 111 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $15,170.00 | |||
1 | J6 | $25,000.00 | $40,170.00 | ||||
3 | J6 | $2,000.00 | $38,170.00 | ||||
3 | J6 | $1,650.00 | $36,520.00 | ||||
3 | J7 | $89.00 | $36,431.00 | ||||
5 | J7 | $492.00 | $35,939.00 | ||||
5 | J7 | $120.00 | $35,819.00 | ||||
5 | J7 | $98.00 | $35,721.00 | ||||
5 | J7 | $397.00 | $35,324.00 | ||||
5 | J7 | $1,845.50 | $33,478.50 | ||||
7 | J8 | $4,881.60 | $38,360.10 | ||||
7 | J8 | $150.00 | $38,510.10 | ||||
12 | J8 | $1,845.50 | $36,664.60 | ||||
14 | J8 | $200.00 | $36,864.60 | ||||
14 | J9 | $4,158.00 | $41,022.60 | ||||
18 | J9 | $1,150.00 | $39,872.60 | ||||
19 | J9 | $1,840.50 | $38,032.10 | ||||
21 | J9 | $180.00 | $38,212.10 | ||||
21 | J9 | $5,248.80 | $43,460.90 | ||||
25 | J9 | $173.00 | $43,287.90 | ||||
26 | J9 | $1,842.00 | $41,445.90 | ||||
28 | J9 | $84.00 | $41,361.90 | ||||
28 | J9 | $109.00 | $41,470.90 | ||||
31 | J9 | $6,471.36 | $47,942.26 | ||||
31 | J10 | $2,500.00 | $45,442.26 | ||||
31 | J10 | $225.00 | $45,217.26 | ||||
31 | J10 | $248.00 | $44,969.26 |
Table (4)
Account: Accounts receivable | Account No. 113 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $1,273.00 | |||
2 | J6 | $367.20 | $1,640.20 | ||||
4 | J7 | $513.54 | $2,153.74 | ||||
5 | J8 | $1,639.39 | $3,793.82 | ||||
7 | J8 | $150.00 | $3,643.82 | ||||
10 | J8 | $351.54 | $3,995.36 | ||||
10 | J8 | $244.08 | $4,239.44 | ||||
12 | J8 | $503.23 | $4,742.67 | ||||
14 | J8 | $200.00 | $4,542.67 | ||||
21 | J9 | $185.00 | $4,357.67 | ||||
28 | J9 | $110.00 | $4,247.67 |
Table (5)
Account: Office supplies | Account No. 114 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $130.00 | |||
2 | J7 | $118.00 | $248.00 |
Table (6)
Account: Spa supplies | Account No. 115 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $205.00 | |||
5 | J7 | $490.00 | $695.00 |
Table (7)
Account: Prepaid insurance | Account No. 117 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $800.00 |
Table (8)
Account: Office equipment | Account No. 124 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $1,150.00 | |||
5 | J7 | $420.00 | $1,570.00 |
Table (9)
Account: | Account No. 125 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $10.00 |
Table (10)
Account: Spa equipment | Account No. 128 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $7,393.00 | |||
3 | J6 | $8,235.00 | $15,628.00 | ||||
25 | J9 | $173.00 | $15,801.00 | ||||
31 | J10 | $1,800.00 | $17,601.00 |
Table (11)
Account: Accumulated Depreciation, Spa equipment | Account No. 129 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $64.88 |
Table (12)
Account: Accounts payable | Account No. 211 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $2,248.00 | |||
1 | J6 | $490.00 | $2,738.00 | ||||
1 | J6 | $5,445.00 | $8,183.00 | ||||
1 | J6 | $3,796.00 | $11,979.00 | ||||
2 | J6 | $2,721.00 | $14,700.00 | ||||
3 | J6 | $6,235.00 | $20,935.00 | ||||
3 | J7 | $89.00 | $20,846.00 | ||||
5 | J7 | $492.00 | $20,354.00 | ||||
5 | J7 | $120.00 | $20,234.00 | ||||
5 | J7 | $397.00 | $19,837.00 | ||||
5 | J7 | $420.00 | $20,257.00 | ||||
5 | J7 | $186.00 | $20,443.00 | ||||
5 | J7 | $118.00 | $20,561.00 | ||||
5 | J8 | $1,309.00 | $21,870.00 | ||||
18 | J9 | $1,150.00 | $20,720.00 |
Table (13)
Account: Wages payable | Account No. 212 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $369.50 | |||
5 | J7 | $369.50 |
Table (14)
Account: Sales tax payable | Account No. 215 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 2 | J6 | $26.00 | $26.00 | |||
4 | J7 | $38.52 | $64.52 | ||||
5 | J8 | $145.28 | $209.80 | ||||
7 | J8 | $361.60 | $571.40 | ||||
10 | J8 | $27.22 | $598.62 | ||||
10 | J8 | $16.48 | $615.10 | ||||
12 | J8 | $38.64 | $653.74 | ||||
14 | J9 | $308.00 | $961.74 | ||||
21 | J9 | $388.80 | $1,350.54 | ||||
31 | J9 | $479.36 | $1,829.90 |
Table (15)
Account: Person AV, Capital | Account No. 311 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | Balance | ✓ | $23,419.62 | |||
1 | J6 | $25,000.00 | 48,419.62 | ||||
31 | J10 | $1,800.00 | 50,219.62 |
Table (16)
Account: Person AV, Drawing | Account No. 312 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 31 | J10 | $2,500.00 | $2,500.00 |
Table (17)
Account: Income summary | Account No. 313 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (18)
Account: Income from services | Account No. 411 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 7 | J8 | $3,110.00 | $3,110.00 | |||
14 | J9 | $2,630.00 | $5,740.00 | ||||
21 | J9 | $2,920.00 | $8,660.00 | ||||
31 | J9 | $4,062.00 | $12,722.00 |
Table (19)
Account: Merchandise sales | Account No. 412 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 2 | J6 | $325.00 | $325.00 | |||
4 | J7 | $481.50 | $806.50 | ||||
5 | J8 | $1,815.95 | $2,622.45 | ||||
7 | J8 | $1,410.00 | $4,032.45 | ||||
10 | J8 | $340.25 | $4,372.70 | ||||
10 | J8 | $206.00 | $4,578.70 | ||||
12 | J8 | $482.95 | $5,061.65 | ||||
14 | J9 | $1,220.00 | $6,281.65 | ||||
21 | J9 | $1,940.00 | $8,221.65 | ||||
31 | J9 | $1,930.00 | $10,151.65 |
Table (20)
Account: Purchases | Account No. 511 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | J6 | $5,300.00 | $5,300.00 | |||
1 | J6 | $3,692.00 | $8,992.00 | ||||
2 | J6 | $2,623.00 | $11,615.00 | ||||
5 | J8 | $1,253.00 | $12,868.00 |
Table (21)
Account: Freight In | Account No. 515 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 1 | J6 | $145.00 | $145.00 | |||
1 | J6 | $104.00 | $249.00 | ||||
2 | J6 | $98.00 | $347.00 | ||||
5 | J8 | $56.00 | $403.00 |
Table (22)
Account: Wages expense | Account No. 611 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 5 | J7 | $1,476.00 | $1,476.00 | |||
12 | J8 | $1,845.50 | $3,321.50 | ||||
19 | J9 | $1,840.50 | $5,162.00 | ||||
26 | J9 | $1,842.00 | $7,004.00 |
Table (23)
Account: Rent expense | Account No. 612 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 3 | J6 | $1,650.00 | $1,650.00 |
Table (24)
Account: Office supplies expense | Account No. 613 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (25)
Account: Spa supplies expense | Account No. 614 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (26)
Account: Laundry expense | Account No. 615 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 28 | J9 | $84.00 | $84.00 |
Table (27)
Account: Advertising expense | Account No. 616 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (28)
Account: Utilities expense | Account No. 617 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 31 | J10 | $225.00 | $225.00 | |||
31 | J10 | $248.00 | $473.00 |
Table (29)
Account: Insurance expense | Account No. 618 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (30)
Account: Depreciation expense, Office equipment | Account No. 619 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (31)
Account: Depreciation expense, Spa equipment | Account No. 620 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
Table (32)
Account: Miscellaneous expense | Account No. 630 | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
20-- | |||||||
July | 5 | J7 | $98.00 | $98.00 | |||
5 | J7 | $186.00 | $284.00 |
Table (33)
Accounts receivable ledger:
Accounts receivable ledger | ||||||
Name : Company AFS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 12 | J8 | $521.59 | $521.59 |
Table (34)
Accounts receivable ledger | ||||||
Name : Company JA | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | ✓ | $325.00 | |||
7 | J8 | $150.00 | $175.00 |
Table (35)
Accounts receivable ledger | ||||||
Name : Company C | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 4 | J7 | $520.02 | $520.02 |
Table (36)
Accounts receivable ledger | ||||||
Name : Company HC | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 10 | J8 | $367.47 | $367.47 |
Table (37)
Accounts receivable ledger | ||||||
Name : Company TL | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $344.00 | ||
21 | J9 | $180.00 | $164.00 |
Table (38)
Accounts receivable ledger | ||||||
Name : Company LOL | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 2 | J6 | $351.00 | $351.00 |
Table (39)
Accounts receivable ledger | ||||||
Name : Company MS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 10 | J8 | $222.48 | $222.48 |
Table (40)
Accounts receivable ledger | ||||||
Name : Company JM | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | ✓ | $486.00 | |||
14 | J8 | $200.00 | $286.00 |
Table (41)
Accounts receivable ledger | ||||||
Name : Company PS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 5 | J8 | $1,961.23 | $1,961.23 |
Table (42)
Accounts receivable ledger | ||||||
Name : Company JW | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $109.00 | ||
28 | J8 | $109.00 |
Table (43)
Accounts payable ledger:
Accounts payable ledger | ||||||
Name : Incorporation A | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $397.00 | ||
August | 5 | $397.00 |
Table (44)
Accounts payable ledger | ||||||
Name : Company G | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 5 | J8 | $1,309.00 | $1,309.00 |
Table (45)
Accounts payable ledger | ||||||
Name : Company GSS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $492.00 | ||
1 | J6 | $490.00 | $982.00 | |||
5 | J7 | $492.00 | $490.00 |
Table (46)
Accounts payable ledger | ||||||
Name : Company LP | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | J6 | $3,796.00 | $3,796.00 |
Table (47)
Accounts payable ledger | ||||||
Name : Company OS | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $120.00 | ||
5 | J7 | $120.00 | $0.00 | |||
5 | J7 | $186.00 | $186.00 | |||
5 | J7 | $118.00 | $304.00 |
Table (48)
Accounts payable ledger | ||||||
Name : Incorporation SE | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $89.00 | ||
3 | J6 | $6,235.00 | $6,324.00 | |||
3 | J7 | $89.00 | $6,235.00 |
Table (49)
Accounts payable ledger | ||||||
Name : Company SG | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | J6 | $5,445.00 | $5,445.00 |
Table (50)
Accounts payable ledger | ||||||
Name : Company SM | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 2 | J6 | $2,721.00 | $2,721.00 |
Table (51)
Accounts payable ledger | ||||||
Name : Company SE | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
20-- | ||||||
July | 1 | Balance | ✓ | $1,150.00 | ||
5 | J7 | $420.00 | $1,570.00 | |||
18 | J9 | $1,150.00 | $420.00 |
Table (52)
3.
Prepare
3.
Explanation of Solution
Trial balance: Trial balance is a summary of all the asset, liability, and equity accounts and their balances.
Prepare the trial balance.
Company AAY | ||
Trial balance | ||
As on July 31, 20-- | ||
Account name | Debit | Credit |
Cash | $44,969.26 | |
Accounts Receivable | $4,568.79 | |
Office Supplies | $248.00 | |
Spa Supplies | $695.00 | |
Prepaid Insurance | $800.00 | |
Office Equipment | $1,570.00 | |
Accumulated | $10.00 | |
Spa Equipment | $17,601.00 | |
Accumulated Depreciation, Spa Equipment | $64.88 | |
Accounts Payable | $20,720.00 | |
Sales Tax Payable | $1,829.90 | |
Person AV, Capital | $50,219.62 | |
Person AV, Drawing | $2,500.00 | |
Income from Services | $12,722.00 | |
Merchandise Sales | $10,151.65 | |
Purchases | $12,868.00 | |
Freight In | $403.00 | |
Wages Expense | $7,004.00 | |
Rent Expense | $1,650.00 | |
Laundry Expense | $84.00 | |
Utilities Expense | $473.00 | |
Miscellaneous Expense | $284.00 | |
Total | $95,718.05 | $95,718.05 |
Table (53)
Thus, the total of trial balance of Company AAY is $95,718.05.
4.
Prepare a schedule of accounts receivable.
4.
Explanation of Solution
Schedule of accounts receivable: A schedule of accounts receivable is a subsidiary ledger that list out the accounts of credit customers individually in alphabetical or numeric order with their respective balances.
Prepare a schedule of accounts receivable:
Company AAY | |
Schedule of Accounts receivable | |
July 31, 20-- | |
Particulars | Amount |
Company AFS | $521.59 |
Company JA | $175.00 |
Company C | $520.02 |
Company HC | $367.47 |
Incorporation TL | $164.00 |
Company LOL | $351.00 |
Company MS | $222.48 |
Company JM | $286.00 |
Company PS | $1,961.23 |
Total Accounts receivable | $4,568.79 |
Table (54)
5.
Prepare a schedule of Accounts payable.
5.
Explanation of Solution
Schedule of accounts payable: A schedule of accounts payable lists is a subsidiary ledger that list out the accounts of creditors (vendors/suppliers) individually in alphabetical or numeric order with their respective balances.
Prepare a schedule of Accounts payable:
Company AAY | |
Schedule of Accounts payable | |
July 31, 20-- | |
Particulars | Amount |
Company G | $1,309.00 |
Company GSS | $490.00 |
Company LP | $3,796.00 |
Company OS | $304.00 |
Incorporation SE | $6,235.00 |
Company SG | $5,445.00 |
Company SM | $2,721.00 |
Company SE | $420.00 |
Total Accounts payable | $20,720.00 |
Table (55)
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Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
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